By Mike Keerma
North American stock markets posted losses on a shortened trading week, as
investors dampened their appetite for risk against a backdrop of continuing
geopolitical tension over a potential North Korean missile test and the
effects of Hurricane Irma on Florida this weekend. The
S&P 500 Composite Index logged a loss of 0.6% on the week, while the
Nasdaq Composite Index pulled back 1.2%. Toronto’s benchmark
S&P/TSX Composite Index retreated 1.4% on the week against a backdrop of a Bank of Canada rate hike
and a decline in the price of
crude oil.
Gold, meanwhile, rose 1.5% on the week, and is now up 17.4% since the beginning
of the year. The
Canadian dollar finished the week higher, at US$0.822.

The Bank of Canada raised its target overnight rate by 25 basis points last
Wednesday, to 1.0%, saying in an accompanying release that” growth in
Canada is becoming more broadly-based and self-sustaining.” While inflation
at below an annual 2% rate is roughly where the Bank expected it to be, it
added “there remains some excess capacity in Canada’s labour market, and
wage and price pressures are still more subdued than historical
relationships would suggest,” suggesting a cautious approach to the timing
of future hikes. Still, given the recent stronger-than-expected rate of GDP
growth, the Bank said, “removal of some of the considerable monetary policy
stimulus in place is warranted.”

Adding some bricks to the Bank of Canada’s foundation for rasing rates,
Statistics Canada reported on Friday that the economy had added 22,200 jobs
in August, pushing down the unemployment rate slightly, to 6.2% from 6.3%
in July. However, the job gains were strongest in among part-time
positions, which grew by 110,000, while full-time jobs dropped by 88,000 in
the month.

FUND NEWS

* Desjardins closes 14 corporate class funds.
Citing changes to tax rules by the federal government, Desjardins
Investments said it is closing 14 of its corporate class funds. In a
release, Desjardin said, the closures are “due in part to the fact that in
2016, the federal government put an end to the Corporate Class Funds’ main
advantages, such as asset transfers from one fund to another without tax
consequences and tax deferrals.” Desjardins plans to shutter the following
funds about Nov. 15.

* Sun Life buys Excel.
Sun Life Global Investments announced the acqusition of fund manager Excel
Funds Management and Excel Investment Counsel Inc., which currently sponsor
and manage the
Excel Funds.

Excel specializes in emerging markets funds and has about $700 million in
assets under management. According to a press release, Excel’s president
and CEO Bhim D. Asdhir will join Sun Life Global Investments leadership
team as a member of the integration planning committee and will continue as
the senior relationship manager for the funds’ sub-advisors and brokers.
Subject to approvals, the transaction is expected to close by the end of
this year.

The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.